mzeiya
Elder Lister
Legal Update & Insight on Kenya's SHIF Act & Regulations: A Comprehensive Guide for Employers & Employees
Despite the recent court stay on certain provisions of "The Social Health Insurance Act (No. 16 of 2023)", the Ministry of Health has moved forward yesterday on 28th January 2023 with publishing the SHIF Regulations and inviting public participation. This is a clear indication that the government is pressing ahead with healthcare reforms.
Key Aspects of the SHIF Act & Regulations:1.Universal Registration: All Kenyan residents including foreign nationals working in Kenya are now mandated to register with the SHIF. This extends to previously uninsured segments, broadening healthcare access.
2.Contribution Structure: A pivotal change is the introduction of a 2.75% gross salary deduction for salaried employees towards SHIF with no upper limit. This marks a significant shift from the capped contributions under NHIF. The capped contribution system under NHIF meant that higher earners had a maximum limit on their contributions. However, SHIF's percentage-based model without a specified cap diverges from the Ministry's earlier communication about a Ksh 5000 cap. This change means that higher-income employees could face substantially larger contributions than under NHIF.
3.Minimum Contributions for Non-Salaried Residents: While both NHIF and SHIF frameworks require minimum contributions, SHIF uniquely extends this obligation to households without salaried income. Such households are mandated to contribute at least Kshs. 300 per month, reflecting SHIF's inclusive approach to healthcare coverage. Crucially, SHIF's contribution assessment for these households is subject to a means test instrument. This instrument evaluates each household's financial capacity, determining the premiums payable based on their income levels.
4.Comprehensive Healthcare Benefits: Covering everything from primary care to critical illnesses, the SHIF promises a more robust safety net for all Kenyans. This is a significant step in health security, particularly beneficial for employees and their families.
5.Tariff Reviews & Adjustments: The Act envisages periodic tariff reviews, factoring in economic and healthcare sector changes. This might lead to future adjustments in contributions or benefits, something both employers and employees should stay aware of.
For the Global Workforce: Non-Kenyans entering the country are required to have travel health insurance. This is crucial information for international employers and employees planning travel to Kenya.
As Kenya navigates through these significant healthcare reforms, staying informed is crucial for both employers and employees. Source: @hklaw_kenya on X